Lions Gate Entertainment (Lions Gate Entertainment) Operating Income : $227 Mil (TTM As of Dec. 2023)

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What is Lions Gate Entertainment Operating Income?

Lions Gate Entertainment's Operating Income for the three months ended in Dec. 2023 was $76 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $227 Mil.

Warning Sign:

Lions Gate Entertainment Corp has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lions Gate Entertainment's Operating Income for the three months ended in Dec. 2023 was $76 Mil. Lions Gate Entertainment's Revenue for the three months ended in Dec. 2023 was $975 Mil. Therefore, Lions Gate Entertainment's Operating Margin % for the quarter that ended in Dec. 2023 was 7.81%.

Warning Sign:

Lions Gate Entertainment Corp operating margin has been in a 5-year decline. The average rate of decline per year is -21.3%.

Lions Gate Entertainment's 5-Year average Growth Rate for Operating Margin % was -21.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Lions Gate Entertainment's annualized ROC % for the quarter that ended in Dec. 2023 was 4.20%. Lions Gate Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -49.40%.

Lions Gate Entertainment Operating Income Historical Data

The historical data trend for Lions Gate Entertainment's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lions Gate Entertainment Operating Income Chart

Lions Gate Entertainment Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Operating Income

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251.80

79.70

198.40

84.50

83.90

Lions Gate Entertainment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															100.00	54.50	25.20	70.70	76.20

Lions Gate Entertainment Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $227 Mil.

Lions Gate Entertainment (NYSE:LGF.A) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Lions Gate Entertainment's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	304.8 * ( 1 - -4.58% )	/	( (7276	+	7887.2)	/ 2 )
=	318.75984	/	7581.6
=	4.20 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6179.4	-	738.7	-	( 223.6	-	max(0, 2821.8	-	986.5	+	223.6	))
=	7276

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7154.7	-	913.7	-	( 283	-	max(0, 3171.8	-	1525.6	+	283	))
=	7887.2

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Lions Gate Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-172.4	/	( ( (237.8 + max(-974.1, 0))	+	(460.2 + max(-890.9, 0)) )	/	2 )
=	-172.4	/	( ( 237.8	+	460.2 )	/	2 )
=	-172.4	/	349
=	-49.40 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(457.1	+	0	+	84.1)	-	(738.7	+	221.4	+	555.2)
=	-974.1

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(810.2	+	0	+	101.8)	-	(913.7	+	266.5	+	622.7)
=	-890.9

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Lions Gate Entertainment's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	76.2	/	975.1
	=	7.81 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Lions Gate Entertainment Operating Income Related Terms

Thank you for viewing the detailed overview of Lions Gate Entertainment's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Lions Gate Entertainment (Lions Gate Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Lions Gate Entertainment Corp (NYSE:LGF.A) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

LGF.B:USA LGNA:Germany LGNA:Germany

Address

250 Howe Street, 20th Floor, Vancouver, BC, CAN, V6C 3R8

Website

https://www.lionsgate.com

Lions Gate Entertainment Corp is engaged in entertainment business. The company's segment includes Motion Picture, Television Production and Media Networks. It generates maximum revenue from the Television Production segment. Television Production segment consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction programming.

Executives

Harkey John D Jr	director	305 MAIN STREET, REDWOOD CITY CA 94063
Bruce Tobey	officer: General Counsel	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Harry Sloan	director, other: Chairman of the Board	1450 2ND STREET, SUITE 247, SANTA MONICA CA 90401
Mignon L Clyburn	director	12601 PLANTSIDE DRIVE, LOUISVILLE KY 40299
Berg Corii D.	officer: General Counsel	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Yvette Ostolaza	director	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Daniel E. Sanchez	director	C/O DISCOVERY, INC., 8403 COLESVILLE ROAD, SILVER SPRING MD 20910
Susan Mccaw	director	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Rachesky Mark H Md	director, 10 percent owner	40 WEST 57TH STREET, 24TH FLOOR, NEW YORK NY 10019
Brian Goldsmith	officer: Chief Operating Officer	LIONS GATE ENTERTAINMENT CORP., 2700 COLORADO AVENUE, SANTA MONICA CA 90292
Mhr Institutional Advisors Iii Llc	10 percent owner	40 WEST 57 STREET, 24TH FLOOR, NEW YORK NY 10019
Mhr Institutional Partners Iii Lp	10 percent owner	40 WEST 57TH STREET, 24TH FLOOR, NEW YORK NY 10019
Gordon Crawford	director	LIONSGATE, 2700 COLORADO AVENUE, SANTA MONICA CA 90404
Arthur Evrensel	director	C/O 2200-1055 WEST HASTINGS STREET, VANCOUVER A1 V6E 2E9
Jon Feltheimer	director, officer: Chief Executive Officer	2700 COLORADO AVENUE, STE 200, SANTA MONICA CA 90404